Glenn Beck Fires Back Over Goldline Investigation

Authorities in California said today they have opened an investigation into Goldline International, a company that pioneered the practice of weaving its sales pitches into broadcasts by popular conservative political personalities -- including two former presidential candidates and Fox News host Glenn Beck -- to sell hundreds of millions of dollars worth of gold every year.

Conservative talk show host Glenn Beck Wednesday lashed out at ABC News and at critics of Goldline, the precious metals dealer that has come under increased scrutiny for aggressive sales tactics.

Beck called the recent ABC News report about Goldline "the biggest spin you've ever seen" and suggested it was part of a government conspiracy to deprive mainstream Americans of choices in how they invest their savings.

"They are going to nudge the gold industry out of business," Beck said during his syndicated radio program Wednesday morning. "They are going to regulate it and regulate it and regulate it, until you won't be able to buy gold anymore. This is what I'm telling you -- they can't have people buying gold. They need to own all the gold. They're going to nudge us. Mark my words."

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Glenn Beck Endorsed Goldline Under Investigation

"ABC has done this story on Goldline and me, and there's nothing new there," Beck said. "Absolutely nothing new there."

Beck's retort was coupled with new postings on a website he created to respond to critics of Goldline -- most notably, Rep. Anthony Weiner, a New York Democrat who took the lead in questioning the company's tactics.

Weiner has alleged that the company intentionally pushes customers into buying collectable gold coins, instead of gold bullion, despite the fact that the coins have a much higher mark-up. Several Goldline customers told ABC News that they were coaxed into buying the coins, only to find out that they were much more difficult to resell at a profit, even as gold prices have skyrocketed.

ABC News reported on Monday that the sales tactics have prompted a joint investigation into the company by the Los Angeles County District Attorney and the Santa Monica City Attorney.

On his website, Beck noted that the Santa Monica's deputy city attorney who appeared on ABC's Nightline and Good Morning America this week to discuss the Goldline probe, was also a donor to the campaign of Barack Obama. FEC records show Radinsky made a $200 contribution to Obama in July 2008.

Radinsky told ABC News that "politics has nothing to do with our investigation."

"We're just here to enforce the law and to see that consumers are treated fairly," he said.

The other agency involved in the investigation, the L.A. County District Attorney's Office, is headed by Steve Cooley, who is this year's Republican candidate for California Attorney General.

The Santa Monica City Attorney's office has asked any Goldline International customer with a complaint to visit its website at www.gold.smconsumer.org.